Samwise Quick Reference Handbook
To streamline our daily blogs and conserve space, we’ve organized key resources into a convenient, collapsible dropdown menu below. A sort of Quick Reference Handbook if you will -- as our friends in aviation might call it. By clicking the menu below, you’ll have qu...
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Hi Sam,
Would we be selling premium just to lower cost basis? Or do we plan on opening up hedges in tandem with selling premium?
Thanks!
Hedges will come later. We’re just selling premium to reduce our overall cost to hedge
In Stark, is this a selling against the 500 calls, the 400 calls, or both ?
It’s both. we own 6 contracts uncovered already and we sold 6 against. So it’s against the 6 contracts we were long.
I think we’re long 5×500 and 2×400 in Stark, total 7 ?
So we’ve already previously sold 1 single contract in the September $520’s earlier on in both Stark and Lannister a few weeks ago. As a result we can only sell 6 contracts.
Right.
I am unable to place this order fully. Only one quarter of it, because of lack of buying power. Strange.
Look at the periods of consolidation with NVDA over the last year, none led to a breakout higher.
but we were consolidating at $115 for a while before this breakout to $135
True but that came fairly early on in the rally. How far the rally has come along makes a significant difference. We have the same sort of thing on the QQQ. Same situation. Late onset consolidations are likely to lead to a top particularly when they coincide with other major factors such as extremely overbought indicators and the segmented rally cycle.
We should be okay. Should be able to buy back our spread at the same price or lower from where we bought. Chances are Nvidia comes down to at least $127 if not $122 (main support).
With $137 highs today, a $12 pullback brings it to $125. That would be a standard pull-back. but with Nvidia having rallied as far as it has, we can easily see a $20 pull-back this time around $137 – $117. The standard range for a pull-back off of extremely overbought is $12-20.
that makes a lot of sense, thanks for the insight
before publication? or the daily drops will be significant if the target is $117
I think last week you said you expected NVDA to pull back early this week and then rally into earnings. With it now being Wednesday and NVDA being higher than it was Monday, do you think the pullback happens after earnings now?
Oops nevermind, First Name coincidentally answered my question like a minute before I even asked mine
I’m new to this, the trades you mentioned did you sell it now and when stock moves down you buy it?
What we did for our portfolios is fairly complicated. It’s an advanced strategy to hedge our positions. We own various call options in the NASDAQ-100 (QQQ) and we sold options against those positions as a way to protect against the downside.
You can read about the strategies here (chapter 3-4):
https://sam-weiss.com/investing-basics/
Oooh, well this is getting exciting!
Potential shooting star candle on NVDA?
I knew that $137 pump was a bull trap
Like clockwork!
Absolute Cinema